• by Michael Shields , April 8, 2004

The much maligned television upfront took one step closer to reform Thursday when the Association of National Advertisers (ANA) and the American Association of Advertising Agencies (AAAA) jointly announced the formation of NUDG (pronounced "nudge") the Network Upfront Discussion Group, and scheduled April 29 for the first meeting of the group, which was created to address various productivity and efficiency issues regarding the network television upfront sales process.

The group will hold its first meeting in a closed-door session on April 29 in New York.

The associations declined to disclose names of invitees to the "closed-door" meeting, but Burtch Drake, president and CEO of the AAAA, said he envisions a group comprised of between five and seven advertisers who are members of the ANA, and between five and seven heads of media buying firms who are members of the AAAA. David Verklin, the CEO of Carat--who proposed the idea that led to NUDG during the ANA's recent Television Advertising Forum in New York--had said he would participate in the process.

Representatives from the major broadcast networks and several cable networks have also been invited, as well as a legal counselor. Drake expects roughly 25-30 industry representatives to participate in the meeting.

The upfront process has long been considered ripe for change by Madison Avenue because of the high-pressured nature of the networks' sales tactics. NUDG will examine a variety of issues in an effort to improve the process, including the possibility of a "closing bell" that would halt negotiations each day of the upfront, which typically continue into the wee hours.

The group will also consider the timing of the yearly event, whether it should be moved or even split into two 'half-upfronts,' and whether buys should cover a calendar-year period rather than the network's traditional season beginning in September.

"It is clear, through public and private member comments and via a specific ANA member survey, that there is substantial dissatisfaction with the current process," said ANA President and CEO Bob Liodice.

Later, in his ANA blog, Liodice addressed any potential misgivings among media buyers and sellers, writing: "My guess is that there is going to be a lot of nervousness and emotion about this discussion group. There shouldn't be. The Upfront has been around for decades and will likely exist for more to come. But that longevity doesn't mean that the process can't be improved." He added: "Let's not over think this. Let's not let speculation run wild. Let's keep our expectations in check. You know what. Let's just get everybody together to talk and see what happens."

The 2004-05 network upfront sales presentations begin May 17, when NBC hosts its event in New York, followed by The WB and ABC (both May 18), CBS (May 19), and UPN and Fox (both May 20). Typically, actual negotiations do not begin until at least a week after the presentations, but early "closet" deals have been known to be made prior to the official schedule announcements.

This year, the major ad agencies have been sending signals that they will slow the process down, and some media shops have already requested that their key network negotiating staff delay summer vacation plans indefinitely.